Code of Ethics and Standards of Professional Conduct MCQs – CFA Level 1
Ethics can be defined as a set of moral principles or rules of conduct that provide guidance for our behavior when it affects others. Here in MCQs.club we have prepare easy and understandable Multiple-Choice Questions (MCQs) on Study Session 1 Code of Ethics and Standards of Professional Conduct that fully cover MCQs on cfa institute code of ethics, cfa level 1 ethics questions, ethical and professional standards cfa level 1. These cfa level 1 ethics notes and flashcards are also useful for competitive exams, other professional accountancy exams and business management exams.
Ethics and the investment industry
- Society ultimately benefits from efficient markets where capital can freely flow to the most ______________ destination.
- Both A&B
- Well- functioning capital markets efficiently match those needing capital with those seeking to invest their assets in revenue- generating ventures.
- In order for capital markets to be efficient, investors must be able to trust that the markets are fair and transparent and offer them the opportunity to be rewarded for the risk they choose to take.
- The above statement is correct
- The above statement is incorrect
- Laws, regulations, and enforcement play a vital role but are insufficient alone to guarantee fair and trans- parent markets.
- Ethics can be defined as a set of moral principles or rules of conduct that provide guidance for our behavior when it affects others.
- The above definition is correct
- The above definition is incorrect
- Widely acknowledged fundamental ethical principles include:
- honesty, fairness
- care and respect for others
- All of the above
- Unethical behavior by individuals have serious personal consequences—ranging from:
- job loss and reputational damage
- fines and jail
- Both A&B